Wage Hike: Legislated Or Otherwise
House Bill (HB) 345, granting a P125 across-the-board daily wage hike of workers, was passed by the House of Representatives on its second reading. The pay adjustment will supposedly be implemented in the following manner: P45 on October 1, 2006; P40 on October 1, 2007; and another P40 on October 1, 2008.
A legislated wage hike, however, might do more harm than good, to the employers, to the country’s economy, and to the workers themselves, who are supposed to be the ones to benefit from this measure.
Labor Sec. Patricia Sto. Tomas, attending a Senate budget hearing, made her views clear on this issue, citing the possible implications of a legislated wage hike. She also referred to the regional tripartite wages and productivity boards which were created to handle wage issues.
If a legislated wage hike pushes through, it could trigger massive layoffs of workers, and even the closure of businesses, by employers who might not be able to sustain the wage increase. Hardest hit would be our small and medium enterprises (SMEs) which are still struggling amid soaring oil prices. SMEs employ a sizable portion of our labor force, which face the possibility of unemployment with the implementation of the law.
While the rising costs of living seem to justify a wage hike, an unconscionable one could also drive up inflation levels due to higher labor costs.
A better solution might be to let the regional wage boards handle the issue and come up with a reasonable wage hike that balances the interests of the workers with the capacity of their employers to compensate them. Non-wage benefits, which will help increase the spending power of the workers, might also be considered.
Related Entries:
Globe Unlimited Text (SMS) Price Hike
10,000 jobs in Alberta, Canada for Filipinos
Jeepney fare back to 7.50 next week
US visa cost set to rise in 2008
FedEx closes Asia-Pacific hub in Subic Bay Philippines
Finally, NCLEX in the Philippines
Amanda Griffin and Phoemela Baranda: UNO Magazine October 2007 Cover Girls
100 Filipinos help build Burj Dubai
Gloria Macapagal-Arroyo’s State of the Nation Address (SONA) 2008 to focus on disaster management
Gwapotel opens to the public
June 15th, 2006 at 5:49 pm
sana matuloy ang wage hike kc hirap na ang taong bayan sa maliit n sahod, agree b kayo?
July 9th, 2006 at 4:50 am
I think it is good that some people are concerned with what other people wages are. I also like the idea that there is a possibility that Filipino workers at the lower tier can get a higher salary. However, we must aslo consider the side of the SMEs on where they will get the circulating fund for the wage hike. I think if we will raise the salary of the workers, we must lower, at least, something from the SMEs side. Perhaps, the tax that the government charges them?
January 29th, 2007 at 6:26 pm
d ako agree dyan… mahihirapan lng ang mga business owners at ipapasa lng nila ito sa
mga binebenta nilang produkto or d kaya magbabawas lng cla ng trabahador…
anu n ang mangyayari sa manufacturing sector ng ating bansa… d n tayo magiging globally
competetive… imbis n taasan ang sahod ay babaan ang basic commodities n kailangan ng
pangkaraniwang tao at bawasan ang vat sa mga ito…